About Your Signature Assignment Signature/Benchmark Assignments are designed to align with specific
program student learning outcome(s) in your program. Program Student
Learning Outcomes are broad statements that describe what students
should know and be able to do upon completion of their degree.
Signature/Benchmark Assignments are graded with a grading guide or an
automated rubric that allows the University to collect data that can be
aggregated across a location or college/school and used for
course/program improvements. Purpose of Assignment This course has provided the in-depth information necessary to create
an all-encompassing global business plan. The final goal is the
assimilation of all previous assignments pertaining to the business plan
into a comprehensive and cohesive presentation by the student. Assignment StepsPrepare a minimum 2,100-word Final Global Business
Plan. Your Final Global Business Plan should integrate previous global
business plan assignments.Include the following information:Develop an Executive Summary including a short overview of the
entire Final Global Business Plan. It should follow the structure and
order of the plan and not exceed two pages.Design a Mission Statement and articulate the purpose of the company’s existence in as few words as possible.Identify the company name, product or service description, and
explain the information obtained regarding the legal, cultural, and
ethical challenges that formulated your rationale for selecting your
target country. Describe the mode of country entry selected. Refer to
your country risk analysis. Develop a chain of command and describe the legal company structure selected. Refer to your organization and product analysis.Define the Foreign Corrupt Practices Act and how it’s applied in international business. Formulate an industry analysis to include: industry size, growth
rate, industry trends and long term prospects. Refer to your industry
analysis.Develop a market analysis to include: a market segmentation and
target market selection, SWOTT and PEST analysis, estimate of annual
sales, market share and distribution channels. Refer to your
organization and product analysis.Describe the following as part of your marketing plan: product
modification-if any, influences of social culture on product, pricing,
use of current global information technologies to promote product
introductions and distribution channels.Describe in detail the functions of the foreign exchange market as
it pertains to: currency conversion to implement payment of trade and
supplies, the potential risks in exchange rates, and cyber and
technology risks. Refer to your Week 3 Individual Assignment.Identify two potential international sources of financing. Refer to your Week 4 Individual Assignment.Compose an income statement extending three months to include: cash
from units sold, less variable and fixed cost, less taxes, to equal
monthly net profit. Use estimated unit value. Refer to class discussion.Compose a cash flow statement extending three months to include:
cash balance at beginning of month, monthly cash flows from operations,
less uses of cash, to equal cash balance at end of month. Use estimated
cash flow values. Refer to class discussion.Explain what type of exit strategy would be appropriate for your
business venture. Several strategies to consider are: divestiture of
assets, handing over to a joint venture partner, diversification,
shutting down operations.Recommend whether this global venture is feasible or not. Propose whether to proceed with this business or not.
Unformatted Attachment Preview
Running head: FOREIGN EXCHANGE MARKET
Foreign Exchange Market
FOREIGN EXCHANGE MARKET
Foreign Exchange Market
Two functions of the Foreign Exchange Market
The Foreign Exchange (FOREX) Market is the place where the purchasers and dealers
are engaged in the purchasing and selling of foreign money. Essentially, the market in which the
monetary standards of various nations are purchased and sold is called as a foreign exchange
market. The two main functions of foreign exchange market are two main functions are transfer
function and give some protection against foreign exchange chance. Transfer Function is the
primary and the unique capability of foreign exchange market is the exchange of foreign
currency begins with one country then on the other for the resolution of payments. It basically
includes the change of a currency of one nation then onto the next, in which the part of foreign
starting with is to exchange the buying power starting with one nation then onto the next. For
instance, if the exporter of India import products from the USA and the payment is to be made in
dollars, at that point the change of the rupee to the dollar will be encouraged by FOREX. The
exchange work is performed through a utilization of acknowledging instruments, for example,
bills of foreign exchange, bank drafts, and phone exchanges. (“Functions of Foreign Exchange
Market”, n.d.) Foreign Exchange insurance is a pledge by means of which the investor and the
Bank are equally indebted to swap over an amount of foreign currency at a set price at a future
Relationship between money supply and inflation
There is a positive relationship between money supply and inflation. Higher money
supply means people will have more money to spend. When the people of nation have more
money to spend the demand for the commodity increases. The increased demand for the
FOREIGN EXCHANGE MARKET
commodity causes the rise in inflation. Moreover, increased money supply also result in
increased interest rates by the bank. On the other hand, the decrease in the money supply will
cause reverse inflation means deflation. The interest rates are decreased by the central bank. For
example, a person had $200 to spend on household commodities to buy total 10 units. When the
money supply increased to $300, he can buy 12 or 13 units depending on the requirement. The
increased demand for 2 to 3 units will cause inflation. (Strano, n.d.)
Difference between freely convertible currency and a non-convertible currency
Freely convertible currency is a currency that doesn’t have any government confinements
on currency exchange. Altogether, there are around 17 freely convertible monetary forms. On the
other hand, a non-convertible currency, otherwise called a “blocked currency”, is the legitimate
tender of a nation that isn’t exchanged at all on the worldwide FOREX market. This is mainly
because of restrictions imposed by the government. The freely convertible currency can be
traded in the foreign exchange market, whereas the non-convertible currency is traded in the
black market. The example of freely convertible currency is the US dollar and the Euro, and the
example of non-convertible currency is Brazilian real and Chilean peso. (“Non-Convertible
Technology risks associated with foreign exchange market
There are numerous technology risk associated with foreign exchange market. First, the
traders can manipulate the currency prices resulting in frauds for investors. The traders can get to
know about the loopholes prevailing in the technology, to raise the price of the currency. For
example, if the conversion rate of US Dollar to British Pound is 1 USD = 0.76 GBP. The traders
can increase or decrease the prices to currency to get benefit from investor’s trade. Second, the
FOREIGN EXCHANGE MARKET
computer system can also get hacked. Intruders can insert malicious software which can steal the
username and password details. Next, the server problem arises which slow down the transaction
process causing the delay in buying or selling of currency. There are some ways to avoid these
risks. The systems should be installed with updated anti-virus software. This will protect the
system from all kind of hackers stealing the password details. It will block all the unnecessary
infected information sent by the intruders. The way to prevent fraud by broker is to cross check
the currency value online.
FOREIGN EXCHANGE MARKET
“Functions of Foreign Exchange Market”. (n.d.). http://businessjargons.com/functions-offoreign-exchange-market.html
“Non-Convertible Currency”. (n.d.). https://www.kantox.com/en/glossary/non-convertiblecurrency/
Strano, A. (n.d.). How and how much can the Money Supply affect the Inflation Rate? .
Running head: MULTINATIONAL CORPORATIONS
Multinational Corporations Case Study
Legal, Cultural and Ethical Challenges That Were Faced By Starbucks Stores in China
Starbucks stores opened its doors in China in 1999 aiming to be their company’s second
largest market after the United States. However, they were hit by various challenges. First,
Starbuck experienced high competition from a Shanghai Xing ba ke coffee shop which copied
their products, logo and even went to an extent of using a brand name similar to Starbucks
though written in Chinese. This lured the customers to think the two stores were the same with
just the differentiation in language. The Chinese government policies were a challenge as well.
This is because China is known to allow violation of trademarks and copycat of the original
In addition, language barrier was also a challenge because shanghai Xing ba ke was able
to twist the register of the company in registering a business with a similar name and logo after
the Starbuck which was registered a year earlier and after the company was sued for copycatting,
the manager had audacity of claiming they did not know of Starbuck. Starbuck also experienced
unhealthy competition by the shanghai Xing ba ke which might have resulted in low sales hence
slow growth. According to Charter (2017), venturing into a new market is not easy as the
existing competitors are usually better placed and have already established their customers or
client base. A combination of a number of these factors in venturing in China was an uphill task
for the Starbucks to overcome.
Various Roles China Played In Starbucks Global Business Operations
For a multinational company to operate in a foreign country, they have to comply with
the rules and regulation of the host country. The host government also has roles to play to ensure
favorable operating conditions of the investors interested in investing in their country. In the case
of Starbucks wins key trademark case in China (Ch.2, p.56), the government china government
has put in place the legal and regulatory inputs that attracted the company to invest in China.
China is highly populated and for the government to allow investors from other countries to
invest in China, it was a way of creating employment to their people thus lowering poverty level.
It is also the role of the host government to protect intellectual property. Despite China been
known not to respect intellectual property right, in this case, the court seems to be shifting to
adopting this right by ordering Xing ba ke to stop using their name and pay Starbucks $62,000 in
compensation for using similar name and logo. In addition, the government helped Starbucks in
expansion through its fast-growing economy which leads provision of low labor cost, availability
of resources and big customer base.
Operational Challenges That Were Faced By Starbucks Managers
The operational managers, in this case, underwent a globalization challenge when the
business encountered improper competition from Xing ba ke. In a competition, it is the duty of
the operational manager to improve the quality of the product and lower the price in order to
remain competitive in the market. This calls for the operations manager to have innovative skills
and knowledge for a business to survive in the globe. To be able to gain any market share in an
industry dominated by equally aggressive competitors, any business manager should focus on
coming up with innovative products and services (Grinvald, 2008).
Additionally, the Starbucks operational manager was faced with compliance and
regulation challenge to the extents they had to challenge their competitors in the court of law for
imitating their brand and logo. It is then very important that every operational manager be
conversant with the laws and regulations of the host country so that they can be able to defend
their businesses from any inappropriate practice that may affect their operations (Grinvald,
2008). Lastly, it is the work of the operational manager to ensure the business has retained their
unique system design. In this case, the Starbuck operational manager was not able to protect or to
change their business design which was easily copied by Xing ba ke. This made the firm lose
what would have been a competitive advantage a major factor that is necessary for remaining
relevant in the market.
Charter, M. (Ed.). (2017). Greener marketing: A responsible approach to business. Routledge.
Grinvald, L. C. (2008). Making Much Ado about Theory: The Chinese Trademark Law.
Vaara, E., & Tienar, J. (2008). A discursive perspective on legitimation strategies in
multinational corporations. Academy of Management Review, 33(4), 985-993.
Final Global Business Plan
MGT/448 Version 9
Global Business Strategies
Individual Assignment: Final Global Business Plan
Purpose of Assignment
This course has provided the in-depth information necessary to create an all-encompassing global business
plan. The final goal is the assimilation of all previous assignments pertaining to the business plan into a
comprehensive and cohesive presentation by the student.
Developed an Executive Summary including a
short overview of the entire Final Global
Business Plan. Followed the structure and
order of the plan and did not exceed two
Designed a Mission Statement and articulated
the purpose of the company’s existence in as
few words as possible.
Identified the company name, product or
service description, and explained the
information obtained regarding the legal,
cultural, and ethical challenges that
formulated student’s rationale for selecting
student’s target country. Described the mode
of country entry selected.
Developed a chain of command and
described the legal company structure
Defined the Foreign Corrupt Practices Act
and how it’s applied in international business.
Formulated an industry analysis to include:
industry size, growth rate, industry trends,
and long term prospects.
Developed a market analysis to include: a
market segmentation and target market
selection, SWOTT and PEST analysis,
estimate of annual sales, market share, and
Described the following as part of student’s
marketing plan: product modification-if any,
influences of social culture on product,
pricing, use of current global information
technologies to promote product
introductions, and distribution channels.
Described, in detail, the functions of the
foreign exchange market as it pertains to:
currency conversion to implement payment of
trade and supplies, the potential risks in
exchange rates, and cyber and technology
Identified two potential international sources
Composed an Income Statement extending
three months to include: cash from units sold,
less variable and fixed cost, less taxes, to
equal monthly net profit. Used estimated unit
Composed a Cash Flow statement extending
three months to include: cash balance at
beginning of month, monthly cash flows from
operations, less uses of cash, to equal cash
balance at end of month. Used estimated
cash flow values.
Explained what type of exit strategy would be
appropriate for your business venture.
Recommended whether this global venture is
feasible or not. Proposed whether to proceed
with the business or not.
The Final Global Business Plan is a minimum
of 2,100 words in length.
The tone is appropriate to the content and
The introduction provides a sufficient
background on the topic and previews major
Paragraph transitions are present, logical, and
maintain the flow throughout the paper.
The conclusion is logical, flows from the body
of the paper, and reviews the major points.
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
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